The Missing Link: Wealth Storage

Money as we know it does not serve effectively as a store of wealth. It has no inherent value and constantly decreases in value over time.

Other characteristics that are desirable in a store of wealth are density of value, stability of value, and widespread acceptance.

There is one substance that stands alone as the best store of wealth, fulfilling the criteria above better than anything else we know. That substance is gold.

Gold is wealth; it is in all our stories, in our history, on our fingers. Yet there is this strange disconnect between what we know of gold and our cultural attitude towards owning, accumulating and utilising it as a practical store of value. As a society, and generally as individuals, we have accepted that our currency should also serve as our wealth, without considering the irreconcilable differences between the two functions of money. In this we do ourselves and our society a great disservice.

On the personal level, it is so much easier to save when what we are saving is has a physical form. There is something naturally more valuable about physical objects than about numbers in a bank account. Gold is not easily given up. Our capacity to become wealthy is curtailed because we cannot see or feel our wealth. When we cannot sense it, cannot experience it, our wealth is of little more than academic value to us and is easily given up for things we can enjoy.

As a society, the consequences are perhaps more severe but less visible. Nevertheless they grow out of the same root. Because we do not accumulate wealth, we accumulate debt. As we accumulate debt as a society, our economy increases leverage. As leverage increases, stability and capacity to withstand the unexpected are reduced. Unstable economies are first evidenced by unstable interest rates, then intensifying boom / bust cycles, and finally to hyper-inflation or devaluation.

Sounds too simple. But a simple problem that exists in the basis on which we build society has profound effects over time. Currency is not wealth. Wealth is not currency. Make a conscious choice to differentiate between the two.


About Neocolonial

Ideas. Dreams. Collector of alternative perspectives. Engineering. Education. Politics. Photography. Whatever else catches my attention.
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